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ALJ/KAJ/avs DRAFT CA-27

Decision DRAFT DECISION OF ALJ JONES (Mailed 8/8/2000)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Joint Application for Approval of Settlement Transition Agreement and Implementation of Replacement Funding for Small Local Exchange Carriers.

Application 99-09-044

(Filed September 21, 1999)

OPINION

A. Summary

In this decision, we grant the motion filed by the 13 small telephone company applicants1 to this proceeding to reset the "waterfall" provision of the California High Cost Fund "A" (CHCF-A) to permit those small telephone companies to receive full funding from that source in 2001, without filing a General Rate Case (GRC) in 2000. We adopt a further comment cycle to determine whether we should establish a two-year cycle for the filing of GRCs by those 13 companies.

1 The small local exchange companies include: Calaveras Telephone Company, Cal-Ore Telephone Co., Ducor Telephone Company, Evans Telephone Company, Foresthill Telephone Co., Happy Valley Telephone Company, Hornitos Telephone Company, Kerman Telephone Company, Pinnacles Telephone Co., The Ponderosa Telephone Co., Sierra Telephone Company, Inc., The Siskiyou Telephone Company, and The Volcano Telephone Company.

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